Annuity Examples
- The Pension Plan
- Mega Millions Annuity
- Powerball Annuity
- Court Settlement
- Tax-Sheltered Annuity
Pension Plan
A pension plan is a type of retirement plan for which an employer contributes to a worker’s pool of account funds. The fund is invested on the worker’s behalf and produces earnings when the worker retires.
When pension plan owners retire, they can either take the plan’s value in a lump sum or payments for the rest of the owner’s life. The payments are in the form of an annuity.
Monthly annuity payments are usually offered as a single-life annuity for the rest of your life or as a joint and survivor annuity that pays monthly for you and your spouse. Joint and survivor annuities pay a lesser amount each month than a single-life annuity, but the payouts continue after your death until the surviving spouse dies.
Mega Millions Annuity
Mega Millions offer lottery winners either a lump sum cash option or a payout.
The annuity payout from Mega Millions is paid one time immediately and then twenty-nine annual payments, each five percent larger than the previous.
Powerball Annuity
The Powerball jackpot offer lottery winners either a lump sum cash option or a payout.
The annuity payout from Powerball is paid one time immediately and then twenty-nine annual payments, each five percent larger than the previous.
Court Settlement
A structured settlement is a settlement that is derived from the result of winning a civil case.
A settlement typically includes a one-time lump sum of cash, followed by regular payments. An annuity distributes these payments.
Tax-Sheltered Annuity (TSA)
Tax-sheltered annuities, or TSAs to the IRS, are pensions for employees of nonprofit organizations as specified by law in regards to Sections 501(c)(3) and 403(b) of the Internal Revenue Code.
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